HC Deb 03 August 1961 vol 645 cc202-3W
38. Mrs. Thatcher

asked the Chancellor of the Exchequer to what extent Her Majesty's Government's policy that increases in dividends should be avoided at the present time applies to trading companies liable to a Surtax direction under Section 245 of the Income Tax Act, 1952; and if he will make a statement.

Sir E. Boyle

As hitherto, where there has been no material change in circumstances, Surtax action will not be taken against a trading company which distributes the same proportion of its profits as the Special Commissioners have accepted as reasonable for past years. A company can obtain the Commissioners' opinion about its past dividends by applying for a clearance under Section 252 of the Income Tax Act, 1952.

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